The Trump administration is working toward cutting illegal migrants off from federal tax benefits and money transfer services, Treasury Secretary Scott Bessent said Friday.
“At [President Trump’s] direction, we are working to cut off federal benefits to illegal aliens and preserve them for U.S. citizens,” Bessent wrote on X.
As part of the effort, the Treasury Department will propose new regulations “clarifying that the refunded portions of certain individual income tax benefits are no longer available to illegal and other non-qualified aliens, covering the Earned Income Tax Credit, the Additional Child Tax Credit, the American Opportunity Tax Credit, and the Saver’s Match Credit,” according to the the Trump administration official.
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) ostensibly prohibits illegal immigrants from obtaining most taxpayer-funded benefits.
However, in a February executive order barring illegal immigrants from access to federally funded benefits, Trump argued that in the decades since PRWORA’s passage, “numerous administrations have acted to undermine the principles and limitations directed by the Congress.”
Treasury aims to classify federal tax benefits as “federal public benefits” within the meaning of PRWORA in its proposed rule.
The department noted last week that the Department of Justice’s Office of Legal Counsel “recently issued an opinion adopting this interpretation.”
Treasury’s final regulations are expected to apply beginning in tax year 2026.
In a separate social media post, Bessent warned that illegal migrants “use our financial institutions to move their illicitly obtained funds.”
Describing that practice as “exploitation,” the Treasury secretary vowed: “It will end.” --->READ MORE HERE
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| Photo by SERGIO FLORES/AFP via Getty Images |
"Illegal aliens that use our financial institutions to move their illicitly obtained funds is exploitation."
Treasury Secretary Scott Bessent said on Friday that he’s working to cut off federal benefits to people in the United States illegally, emphasizing that those benefits should be preserved for American citizens.
“At [President Donald Trump]‘s direction, we are working to cut off federal benefits to illegal aliens and preserve them for U.S. citizens,” Bessent posted to X on Friday.
“[The United States Treasury] announced that it will issue proposed regulations clarifying that the refunded portions of certain individual income tax benefits are no longer available to illegal and other non-qualified aliens, covering the Earned Income Tax Credit, the Additional Child Tax Credit, the American Opportunity Tax Credit, and the Saver’s Match Credit,” he explained.
At @POTUS @realDonaldTrump's direction, we are working to cut off federal benefits to illegal aliens and preserve them for U.S. citizens.@USTreasury announced that it will issue proposed regulations clarifying that the refunded portions of certain individual income tax benefits… https://t.co/pn2MXoxDHC
— Treasury Secretary Scott Bessent (@SecScottBessent) November 28, 2025
Bessent’s announcement was made in response to President Donald Trump declaring on Thanksgiving that he would pause all migration from third-world countries.
Trump also promised to “end all Federal benefits and subsidies to noncitizens of our Country, denaturalize migrants who undermine domestic tranquility, and deport any Foreign National who is a public charge, security risk, or non-compatible with Western Civilization.” --->READ MORE HERE
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